Inventory market weekly wrap: Sensex, Nifty 50 rebound; What to anticipate from Indian inventory market subsequent week?

Indian inventory market: After shifting in downward trajectory for 3 weeks, the Indian benchmarks made a powerful comeback within the first week of March 2025. The indices closed in inexperienced, rising practically 2 per cent on Friday, March 7. The Nifty settled at 22,552.50, whereas the Sensex closed at 74,332.58, marking a big rebound.

The market recovered regardless of weak world cues amid rising risk of tariff wars on a number of buying and selling companions.

The worldwide sentiment improved following reviews of a delay in U.S. tariffs and the potential of additional negotiations, which helped stabilize monetary markets. Moreover, a weaker greenback and a decline in crude oil costs additional boosted investor confidence.

On the home entrance, Reserve Financial institution of India (RBI) introduced its choice to infuse liquidity into the system added to the constructive momentum.

The mix of those elements led to a broad-based rally throughout sectors, with steel, power, and pharmaceutical shares rising as the highest gainers. The broader indices additionally posted spectacular features, rising between 2.6 per cent and 5.5 per cent

Key driving elements for Indian inventory market subsequent week

Subsequent week, the market will witness a shortened buying and selling week as it would stay closed on Friday, March 14, on account of Holi. Buyers or market contributors will intently monitor key elements together with contemporary updates on tariff negotiations, geopolitical tensions, and their affect on the motion of the U.S. greenback and crude oil costs.

“Subsequent week can be a truncated one owing to vacation on Friday resulting from Holi. We count on world cues together with inflation knowledge from US and India to be intently tracked and to drive the general investor sentiments. Moreover, non-farm payroll knowledge from US and additional improvement on the tariff entrance will even be intently watched,” brokerage agency SBI Securities stated in its report titled ‘Weekly Wrap’.

For the week, FIIs internet offered equities value ₹25,247 crore whereas DIIs internet purchased ₹18,631 crore of equities within the money market. “Overseas Institutional Buyers (FIIs) have slowed their promoting in money markets, however any shift of their stance will stay a vital indicator for market path. On the macroeconomic entrance, the discharge of the Index of Industrial Manufacturing (IIP) and Shopper Worth Index (CPI) inflation knowledge will even be intently tracked,” stated Ajit Mishra – SVP, Analysis, Religare Broking Ltd.

Technical Outlook for Nifty50

In response to Mishra, the Nifty50 index is prone to transfer in the direction of 23,200-23,400 vary within the coming week, if market sentiments stay constructive.

“From a technical perspective, Nifty faces a vital hurdle at its 20-day Exponential Transferring Common (DEMA) close to 22,700. A sustained transfer above this degree, supported by banking shares, may push the index in the direction of the 23,200-23,400 vary. Nonetheless, a detailed under 22,250 might stall the restoration and result in a retest of the important thing help zone between 21,800 and 22,000,” Mishra added.

Equally, Financial institution Nifty is anticipated to propel in the direction of 50,000 mark. “ Within the banking sector, a decisive breakout above 49,000 on the Financial institution Nifty—its 20 DEMA—may present the mandatory momentum to propel the index towards the 50,000 mark,” he stated.

SBI Securities stated that the massive cap high quality shares can be preferable over smallcap shares subsequent week. “Technically, the index is prone to proceed its pullback rally within the subsequent couple of buying and selling classes. Speaking about essential ranges, the zone of twenty-two,670-22,700 will act as a direct hurdle for the index as it’s the confluence of 20-day EMA and 38.2 p.c,” the brokerage agency stated.

It additional added that if the index sustains above the 22,700 degree, then it could witness an extension of the pullback rally as much as the extent of 23,000, adopted by the 23,300 degree within the quick time period. On the draw back, the zone of twenty-two,300-22,250 is probably going to supply a cushion in case of any rapid decline.

What ought to be your buying and selling technique for subsequent week?

Inventory market specialists are remaining cautiously optimistic in the marketplace resulting from current restoration. Nonetheless, the market is anticipated to stay risky within the coming week with key world and home occasions lined up.

Specialists additional advocate buyers to remain vigilant amid volatility out there and may deal with inventory choice.

“Given the prevailing state of affairs, buyers are suggested to take care of a constructive but cautious method. Inventory choice ought to deal with firms demonstrating relative energy and powerful upside potential. The broader indices have approached their preliminary resistance ranges, making it prudent to restrict aggressive positions and keep away from including to loss-making trades at this juncture,” stated Mishra of Religare Broking.

Disclaimer: This story is for instructional functions solely. The views and suggestions above are these of particular person analysts or broking firms, not Mint. We advise buyers to examine with licensed specialists earlier than making any funding selections.